Ethereum-based decentralized finance (DeFi) protocol dYdX has announced that it will end its operations in Canada. After this announcement, DYDX, the token of the stock market, fell. Here are the details.
According to the official announcement, users in Canada will not be able to open new accounts on the exchange as of today. However, trade support for existing Canadian customers will end in a week. The following statements were used in the statement:
“As part of the liquidation process, we want to provide existing Canadian users with ample time to manage and close their positions in dYdX. Therefore, existing users will be able to continue trading on our platform for one week.”
In recent years, Canadian regulators have taken action against several major trading platforms, including Binance, Bitfinex, and KuCoin. In announcing this development, dYdX drew attention to the current regulatory environment in Canada. The team behind dYdX said:
“We hope that the regulatory environment in Canada will change over time to allow us to continue services in the country.”
Canada has taken a more restrictive stance towards exchanges in the country in recent months following the collapse of FTX.
At the end of this development, dYdX and DeFi protocols may see a negative impact on their operations. As a first impact, dYdX’s native token has experienced an increase in selling pressure. While the altcoin was trading at $ 2.6106, it fell to $ 2.4325. This shows that the altcoin price has lost more than 6% of its value.
You can follow the current price action here.